Elaboration of Вalance-optimization Economic and Mathematical model of Development of a Large Municipal Unit: the Experience
Alexander S Novoselov, Alexey E Kovalev, Egor A Gaiduk
Abstract
The objective of the study is to develop a balance-optimization economic and mathematical model which allows predicting steady and sustainable development of a large municipal unit. Using the method of dynamic programming by Richard Bellman the authors worked out the economic and mathematical model for optimizing the key indicators of socio-economic development of a municipal unit. In the model there are used and predicted the indicators included in the list of the key performance indicators of municipal unit authorities. Analyzed are the results of using the model for a large municipal formation – the city of Novosibirsk. The calculations made by the authors indicate that the model may work with actual economic information and may be used for predicting and making managerial decisions at a municipal level.